How The Rich Campaigned for, Lobbied and Stole Economic Recovery

It is no secret that today on the Internet, Television and Radio you will hear news of the Great Economic Recovery! While it is certainly true that the traditional indicators of economic health have shown positive signs of life, it is also true that the American Elite (the American equivalent of Russian Oligarchs) have gamed the system to make the economy look healthy, while screwing the average American in the rectal cavity. 

By now most of you have already heard of the economic recovery that has lasted the past three years. Most mainstream media and financial analysts point to unemployment figures, corporate profits, and wall street indexes to unequivocally prove that the American Economy is on a path to recovery in a big way. However, these very same analysts will not point to how the majority of American People are living today as opposed to six years ago.

The average middle class American today (wage per capita less than $60,000) will find their adjusted-for-inflation annual wages down by 5%, as opposed to six years ago. Compare that with the upper class (wage per capita more than $150,000) and the upper crust (wage per capita more than $500,000), whose adjusted-for-inflation annual wages are up by 10% and 25%, respectively. You can see the unfair disparity in these figures. 

You may ask yourself - how come the economy seems like it is healthy?

The answer is simple - it is a combination of the Federal Reserve pouring in money into the markets without any rational limits, the Unemployment Index not showing the full picture and the Corporate landscape using creative means to make a profit while preventing the benefits of those profits to reach common Americans. 

It is clear as day that since the financial crash of 2008, the Federal Reserve has been printing money to mask the deflation that should have taken place in order to stabilize the unhealthy explosion in asset values which occurred due to Bank Deregulation and the Housing Asset Bubble. And, to a certain extent, the Federal Reserve has been successful in psychologically bypassing the panic and collapse associated with the deflation of the Great Depression of 1929. 

However, just like Herbert Hoover's administration in the post-crash years, Barak Obama's administration has stepped into the same trap of trying to stimulate the economy from the top down. In Hoover's time it was called "Trickle-Down Economics", in Obama's time it is called "Bailout" and "Stimulus Package". History teaches us that it doesn't teach us anything. Just like in the 20th century, in the 21st century the Corporations kept the money made as a result of Government assistance, while the average American has seen their savings shrivel and their paycheck devalue with time. 

With respect to the Unemployment Index, all it shows is how many Americans are getting a paycheck. While it is true that there are many more people employed today as opposed to four years ago, it is also true that the vast majority of recent employment opportunities are either part-time, contract, full-time positions with lower salaries, or full-time positions with multiple role responsibilities. As such, a large majority of American population that is a part of the "employed" figures according to the index is in fact "underemployed", if not completely overworked. 

Corporate profits are up! The American stocks are soaring in value. But the vast majority of this growth is due to creative tactics, not an increase in productivity. The Corporations are using the free liquidity pouring in from the Federal Reserve to restructure their debt (refinance) and make their balance sheets look healthier. They are also cutting their biggest expense - the employees. Whether it is through laying off older more expensive employees in favor of fresh from college graduates, reducing employee benefits, or "consolidating" their workforce by having fewer employees do more - it leads to the appearance of profits. If that wasn't enough, the profits the companies are getting, they're not using to grow the business and hire more people - the corporations know there isn't a growth in the actual demand. Instead, they increase the value of their stock by putting all of those profits to buy back their own stock, which leaves the remaining shares more valuable - making it look like the company is growing, when in fact it is not.

So the Corporate Landscape, which was too big to fail, is thriving! However, the ordinary people who make these corporations work are losing. They are losing in wages, benefits, personal time, rising cost of goods, and oh by the way having their tax dollars sponsor the bailouts of the very companies that are now fleecing them.

The true problem is that we, as a people, have lost faith in our Democracy. Through our apathy, we have turned it into a De Facto Polyarchy! Get off your lazy ass and write a page, just a page, to your local representatives and senators. Make sure that your voice is heard! Make phone calls to those same representatives and senators. Get your community to know the facts and get them voting. This should be our Outbreak - an Outbreak of Consciousness.

"Real Money"

One thing that people often can't seem to accurately grasp, due to years and years of indoctrination, is the concept of what real money means. Nowhere is this lack of grasp more evident than the United States of America. The reasons for this syndrome is years, decades and over a century of dollar dominance.

The truth, which people seem to forget is that every dollar in your pocket is a government-issued currency, backed by the faith of that government. If the government can no longer substantiate the value of the dollar, the paper currency you carry in your pocket, and in all of your accounts, is just that - paper. Not even worth the paper it is printed on.

If the government cuts on its revenue collection, it will have less money in the budget. Government currently spends wildly on elected officials and provides a slew of entitlements (corporate and individual); which forces the Treasury and the Federal Reserve to engage in printing money to cover these expenses. Sounds great, doesn't it? Until you realize that every time money printing occurs, they amount of paper money you have is being devalued.

Over the course of the past three years, since 2008, the United States Treasury has tripled (3x) the amount of  United States dollars in existence. As a result, every dollar in your pocket should now (2011) be worth one third (33%) of what it did in 2008. So how come the prices in most cases didn't increase threefold?

The reason being is that our economy has actually contracted over the course of the past three years. We haven't experienced real economic growth in over three years. We have actually suffered deflation during this period in time. The Federal Reserve officially engaged in Quantitative Easing (printing money) in order to "kick-start" the economy, when in fact the chairman of the Federal Reserve was attempting to prevent a natural, albeit painful, free market correction - deflation.

In a period of deflation, prices and salaries fall resulting in the increase of the dollar's value. Therefore as the Federal Reserve was helping the Treasury print money, the prices and salaries didn't skyrocket threefold, because the economy was suffering a period of deflation.

People who understand this gradual devaluation of the dollar have already rushed to purchase hard assets, whose value isn't dependent on the faith of the United States government. We are talking about foreign property, precious metals (gold, silver), and other things whose value is stable and not dependent on the dollar.

Gold, Silver are "Real Money", because unlike the dollar, their value does not depend upon the United States government, nor any other authority. These precious metals carry value in themselves. In a way the value of Gold and Silver do not change - their pricing in terms of US Dollar changes due to the change of the value of the dollar.

The skyrocketing price of Gold and Silver is a reflection on people's (and governments') speculation on the lack of value of the US Dollar. More individuals are acquiring gold as a safety net against inflation. But it's not just individuals who are acquiring Gold and Silver. China, and the entire Asian region, is buying gold in bulk. Chinese, who own the vast majority of US debt, have a reason to be concerned about the plummeting value of the dollar.

Therefore, they're trading in dollars into "Real Money". What's right for you? Only you can make that decision.